Can I get 30 year loans in an LLC?

Question

I'm wondering If I can refinance my 20-year loans at 6% into 30 year loans at 4% if I'm in an LLC? I knew in the game and my bank requires 20-year loans at the business rate of 6%. I hear people talking about getting 30-year loans at 4%. If it's possible, how do I do this? Thanks so much!

Albert Bui · Answer

There are 30 year fixed loans for LLC's that are non conforming (not fannie and freddie/conventional). You will usually be paying a bit of a premium in rate usually 1.00-1.50% in rate premium but the advantage is the original note and deed/mortgage security instrument will be recorded in your LLC's name (no due on sale risk of LLC post closing transfer with a conv/fannie/freddie mortgage).

If you want the lowest rates possible then you may want to stick with the agency/conv paper and doing that post closing transfer after you've seasoned the agency note/mtg so that the lender can get a chance to package it up and sell it before you do that title transfer. If you transfer it prior to them selling the mortgages they may call the note because that may cause them to delay their ability to sell the note.

Dave Steadman · Answer

Albert bui I appreciate your thoroughness and insight. Thks

Mark Rygh · Answer

@Albert Bui Thank you so much for your response! Helpful to get feedback. I will continue to explore ways to lower my monthly costs through finding the better interest rates or refinancing in creative ways. Thanks again!

Andrew Postell · Answer

@Richard Cruz I think what you might be asking here is "are there any banks that will call your note due if you switch your title".  And the answer to that is no.  Banks/Lenders make a TON of money on these loans.  They don't want to upset that at all.  Just as long as you pay on time changing the title will not be a big deal to banks.  I hope this helps.

Richard Cruz · Answer

@Andrew Postell what banks let you transfer your loan to an llc after it’s been refinanced in your name? I have a few rentals with great terms and rates that I’d like to transfer to my llc. Thanks

Mark Rygh · Answer

@Andrew Postell thanks a ton for your helpful response!

Andrew Postell · Answer

@Mark Rygh what most investors do here is they close in a Fannie/Freddie loan in their personal name, then they transfer the property to their LLC after closing.  That's how they get the 30 year fixed rate loans.  However, do NOT expect 4% on your investment property at this time.  You can get that on your primary home, but not on an investment property.

Can I get 30 year loans in an LLC?

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